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DECREE No. 175/2004/ND-CP OF OCTOBER 10, 2004 ON SANCTIONING ADMINISTRATIVE VIOLATIONS IN THE TRADE DOMAIN

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the May 10, 1997 Commercial Law;

Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations;

At the proposal of the Trade Minister,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

1. This Decree provides for administrative sanctions against individuals and organizations that intentionally or unintentionally commit acts of violating State management regulations in the trade domain, which do not constitute criminal offenses but must, according to the provisions of this Decree, be administratively sanctioned.

2. Administrative violations in the trade domain prescribed in this Decree include:

a/ Acts of violating regulations on business registration certificates, committed by enterprises and business households;

b/ Acts of violating regulations on establishment and operation of foreign traders' representative offices and branches in Vietnam;

c/ Acts of violating regulations on circulation of, and dealing in, goods and services on the market;

d/ Acts of violating regulations on trade promotion;

e/ Acts of violating regulations on goods export and import and services related thereto;

f/ Acts of violating regulations on other commercial activities and services.

3. Other acts of administrative violation in the trade domain not directly prescribed in this Decree shall be sanctioned under other Government's decrees on sanctioning of administrative violations in the relevant State management domains.

Article 2.- Subjects of application

1. Vietnamese individuals and organizations that commit acts of administrative violation in the trade domain shall all be sanctioned according to the provisions of this Decree.

2. Foreign individuals and organizations that commit acts of administrative violation in the trade domain within the Vietnamese territory shall be sanctioned according to the provisions of this Decree, unless otherwise provided for by international agreements which Vietnam has signed or acceded to.

3. Minors who commit acts of administrative violation in the trade domain shall be sanctioned according to the provisions of Article 7 of the Ordinance on Handling of Administrative Violations.

Article 3.- Sanctioning principles

1. Administrative violations in the trade domain must be detected in time and promptly stopped. Acts of administrative violation in the trade domain must be sanctioned within the prescribed time limit. Past the time limit prescribed in Clause 1, Article 56 of the Ordinance on Handling of Administrative Violations, the persons with sanctioning competence must not issue sanctioning decisions but must still apply remedial measures prescribed in this Decree and confiscate administrative violation exhibits which are subject to circulation ban.

2. An act of administrative violation shall only be sanctioned once; a person commits many acts of administrative violation shall be sanctioned for each of such acts; if many persons jointly commit one act of administrative violation, each of them shall be sanctioned. When sanctioning a person who commits many acts of administrative violation in the trade domain, competent persons shall issue only one sanctioning decision clearly stating the sanctioning forms and levels for each act of violation. If the sanctioning forms are fines, they shall be summed into a common fine imposed under the sanctioning decision.

3. The sanctioning of administrative violations must be based on the nature, seriousness as well as extenuating and aggravating circumstances prescribed in Articles 8 and 9 of the Ordinance on Handling of Administrative Violations in order to decide on the sanctioning forms and levels as well as remedial measures.

4. Persons with competence to sanction administrative violations in the trade domain must impose sanctions strictly according to their competence. If persons with sanctioning competence are absent, they shall authorize in writing their deputies to exercise the sanctioning competence and the authorized persons shall be responsible for their sanctioning decisions.

5. If detecting criminal signs in the violation cases, competent persons must transfer violation dossiers, exhibits and means to the criminal procedure-conducting bodies. Where they have issued administrative violation-sanctioning decisions, they must issue decisions to cancel such decisions. Within three days as from the date of canceling the administrative violation-sanctioning decisions, the dossiers of the violation cases must be transferred to the criminal procedure-conducting bodies.

6. In a violation case, if one of violation acts is subject to a sanctioning form, level or remedial measure beyond the sanctioning person's competence, the whole case must be transferred to competent authorities for sanctioning. In case of imposing fines, the sanctioning competence shall be determined on the basis of the maximum level of the fine bracket prescribed for each violation act.

7. It is strictly forbidden to retain violation cases involving criminal signs for administrative sanction; it is strictly forbidden to divide the violation cases which fall beyond one's competence and retain them for sanctioning according to one's competence.

8. Sanctions shall not be imposed on administrative violations committed in the cases of emergency, legitimate self-defense, unexpected events or committed by those who are suffering from mental or other diseases which have deprived them of the ability to perceive or control their behaviors.

9. For cases where the sanctioning decisions are issued ultra vires, against the wrong subjects or the wrong violation acts, with the wrong sanctioning forms and levels, beyond the sanctioning statute of limitations and time limits, such illegal sanctioning decisions must be promptly cancelled. Competent persons who are at fault in the issuance of the illegal sanctioning decisions must be disciplined or examined for penal liability; if causing property damage, they must pay compensations therefor according to law provisions.

Article 4.- Application of forms of sanctioning administrative violations and remedial measures

1. When sanctioning administrative violations, persons with sanctioning competence may apply only sanctioning forms and remedial measures (if any) prescribed for violation acts.

Each administrative violation shall only be sanctioned with a principal sanctioning form. In addition to the principal sanctioning form, depending on their specific nature and seriousness, administrative violations may be also subject to the application of one or several additional sanctioning forms and remedial measures. Additional sanctioning forms and remedial measures may only be applied together with principal sanctioning forms and must not be applied independently, without principal sanctioning forms.

2. Caution is a principal sanctioning form which shall be applied only to minor, first-time violations involving extenuating circumstances and violation acts prescribed to be subject to caution as a sanctioning form.

3. Fine is a principal sanctioning form which is applied as follows: the specific fine for an act of administrative violation is the average level of the fine bracket prescribed for each violation act; if such act involves extenuating circumstances, the fine may be lowered but must not be below the minimum level of the fine bracket; if it involves aggravating circumstances, the fine may be increased but must not be higher than the maximum level of the fine bracket.

4. Deprivation of the right to use assorted licenses, trade practice and service provision certificates is an additional sanctioning form which is applied only to cases where individuals and organizations seriously violate regulations on the use of assorted licenses and practice certificates and violation acts prescribed to be subject to this sanctioning form.

5. Confiscation of exhibits, means used in the commission of administrative violations is an additional sanctioning form which is applied only when the administrative violation acts are prescribed to be subject to this sanctioning form. Exhibits, means used in administrative violations include things, money, goods and means directly related to administrative violations. Exhibits and means illegally appropriated by individuals or organizations for commission of administrative violations shall not be confiscated but shall be returned to their lawful owners or managers or users.

6. Remedial measures are applied only to administrative violation acts prescribed to be subject to the application of these measures together with principal sanctioning forms in order to thoroughly handle the violations, preclude their causes and conditions for recidivism, overcome all consequences caused by administrative violations.

Article 5.- Statute of limitations for sanctioning administrative violations in the trade domain and time limit for being considered not having been administratively sanctioned

1. The statute of limitations for sanctioning administrative violations in the trade domain is one year as from the date of commission of administrative violations.

2. For administrative violations committed in the goods export or import or the provision of services related to goods export or import; acts of smuggling, transporting or trading in smuggled goods; acts of producing and trading in fake goods, the statute of limitations for sanctioning them is two years as from the date of commission of administrative violations.

Past the above-said time limits, administrative violations shall not be sanctioned but shall be still subject to the application of remedial measures prescribed at Points a, b, c, d and e, Article 12 of the Ordinance on Handling of Administrative Violations and this Decree.

3. Individuals against whom criminal cases have been instituted, who have been prosecuted or got decisions to bring them to trial according to criminal procedures but later got decisions to stop investigation or criminal cases where their violation acts show signs of administrative violation shall be administratively sanctioned. The statute of limitations for sanctioning is three months as from the date persons with sanctioning competence receive the decisions to stop the violation cases and their dossiers.

4. Within the time limits prescribed in Clauses 1, 2 and 3 of this Article, if individuals or organizations that already committed administrative violations, commit new administrative violations in the trade domain or deliberately shirked or obstructed the sanctioning, the statute of limitations shall be re-calculated from the date when new administrative violations are committed or the time when acts of shirking or obstructing the sanctioning terminate.

5. For individuals or organizations that have been sanctioned for administrative violations in the trade domain, one year as from the date they completely serve the sanctioning decisions or as from the expiry of the statute of limitations for executing sanctioning decisions, if they do not relapse into violations, they shall be considered not yet having been sanctioned for administrative violations in the trade domain.

6. The time limits and statute of limitations for sanctioning administrative violations in the trade domain shall be calculated according to the provisions of Article 9 of the Government's Decree No. 134/2003/ND-CP of November 14, 2003 detailing the implementation of a number of articles of the 2002 Ordinance on Handling of Administrative Violations (hereinafter referred to as the Government's Decree No. 134/2003).

Chapter II

ACTS OF ADMINISTRATIVE VIOLATION, SANCTIONING FORMS AND LEVELS

Section 1. ACTS OF VIOLATING REGULATIONS ON BUSINESS REGISTRATION CERTIFICATES, COMMITTED BY ENTERPRISES AND BUSINESS HOUSEHOLDS

Article 6.- Violations of regulations on business registration certificates, committed by enterprises

a/ A fine of between VND 2,000,000 and 5,000,000 shall be imposed for one of the following acts:

a/ Leasing or lending business registration certificates;

b/ Arbitrarily adding, erasing or modifying the contents of business registration certificates.

2. A fine of between VND 3,000,000 and 7,000,000 shall be imposed for acts of doing business not according to the business lines, goods items, locations and geographical areas stated in the business registration certificates.

3. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Doing business in the form of enterprise without business registration certificates;

b/ Continuing business activities after the business registration certificates are revoked.

4. A fine of between VND 8,000,000 and 15,000,000 shall be imposed for acts prescribed in Clauses 1, 2 and 3 of this Article in case of dealing in business lines, goods items or services on the list of those subject to restricted or conditional business.

5. The provisions of this Article also apply to the sanctioning of acts of violating regulations on business registration certificates, committed by enterprises' branches or representative offices based in provinces or cities.

Article 7.- Violations of regulations on business registration certificates, committed by business households

1. A caution or a fine of between VND 50,000 and 200,000 for one of the following acts:

a/ Leasing or lending business registration certificates;

b/ Arbitrarily adding, erasing or modifying the contents of business registration certificates.

2. A fine of between VND 100,000 and 300,000 shall be imposed for acts of doing business not according to the business lines, goods items, locations and geographical areas stated in the business registration certificates.

3. A fine of between VND 200,000 and 400,000 for one of the following acts:

a/ Doing business in the form of business household without business registration certificates;

b/ Continuing business activities after the business registration certificates are revoked.

4. A fine of between VND 300,000 and 700,000 shall be imposed for acts prescribed in Clauses 1, 2 and 3 of this Article in case of dealing in business lines, goods items or services on the list of those subject to restricted or conditional business.

Article 8.- Violations of regulations on business registration procedures and signboards

The sanctioning of acts of administrative violation of business registration procedures; enterprises' head offices, private business households' locations; signboards of trading and/or service business establishments shall comply with the provisions of the Government's decrees providing for sanctioning of administrative violations in business registration or in the culture and information domain.

Section II. ACTS OF VIOLATING REGULATIONS ON ESTABLISHMENT AND OPERATION OF FOREIGN TRADERS' REPRESENTATIVE OFFICES AND BRANCHES IN VIETNAM

Article 9.- Violations of regulations on establishment and operation of foreign traders' representative offices in Vietnam (hereinafter referred to as representative offices)

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Failing to operate within the prescribed time limit after being granted the representative office establishment licenses;

b/ Failing to notify the licensing agencies within the prescribed time limit of the locations of, numbers of Vietnamese and foreigners working at, representative offices;

c/ Failing to notify the licensing agencies within the prescribed time limit of the termination of the operation of representative offices;

d/ Failing to return the granted licenses to the licensing agencies within the prescribed time limit after terminating the operation of representative offices;

e/ Failing to send reports, supply documents or explain matters related to the operation of representative offices at the requests of competent State bodies;

f/ Failing to notify the licensing agencies of the relocation of representative offices in the same province or city or the change of the heads of representative offices within the prescribed time limit.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:

a/ Having no locations for opening representative offices or renting more than one location for opening a representative office or dealing in the sub-lease of representative offices;

b/ Failing to carry out procedures for modifying or supplementing the contents of their licenses according to regulations when changing the contents of activity of representative offices compared with the granted licenses;

c/ Failing to carry out procedures to apply for new licenses according to regulations after relocating their representative offices to other provinces or cities;

d/ Arbitrarily adding, erasing or modifying the contents of the granted licenses.

3. A fine of between VND 20,000,000 and 40,000,000 shall be imposed for one of the following acts:

a/ Operating at variance with the representative offices' activity contents stated in the licenses;

b/ Signing contracts for goods purchase and sale or service provision without foreign traders' valid papers of authorization for each contract according to regulations;

c/ Failing to send annual reports on representative offices' activities to the licensing agencies according to regulations.

4. A fine of between VND 40,000,000 and 60,000,000 shall be imposed for one of the following acts:

a/ Performing the function of representing other foreign traders in Vietnam;

b/ Continuing operating after the foreign traders terminate their operation or notify on the termination of the operation of the representative offices;

c/ Continuing operating after competent State bodies issue decisions to withdraw or cancel the representative office establishment licenses.

Article 10.- Violations of regulations on establishment and operation of foreign traders' branches in Vietnam (hereinafter referred to as branches)

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:

a/ Failing to operate within the prescribed time limit after being granted the branch establishment licenses;

b/ Failing to notify the licensing agencies within the prescribed time limit of the locations of, numbers of Vietnamese and foreigners working at, branches;

c/ Failing to notify the licensing agencies within the prescribed time limit of the termination of the operation of branches;

d/ Failing to return the granted licenses to the licensing agencies within the prescribed time limit after terminating the operation of branches;

e/ Failing to send reports, supply documents or explain matters related to the operation of branches at the requests of competent State bodies.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for one of the following acts:

a/ Having no locations for opening branches' head offices or renting more than one location for opening a branch's head office;

b/ Failing to carry out procedures for modifying or supplementing the licenses according to regulations when arbitrarily changing the contents of activity of branches;

c/ Arbitrarily adding, erasing or modifying the contents of the licenses.

3. A fine of between VND 30,000,000 and 50,000,000 shall be imposed for one of the following acts:

a/ Failing to carry out procedures to apply for new licenses according to regulations when relocating the branches' head offices to other provinces or cities;

b/ Operating at variance with the branches' activity contents inscribed in the licenses;

c/ Signing contracts for goods purchase and sale or service provision at variance with the branches' activity contents other than the cases prescribed at Point a, Clause 4 of this Article;

d/ Failing to send periodical reports and annual financial statements on the branches' activities to the licensing agencies according to regulations or making financial statements incompliant with regulations.

4. A fine of between VND 50,000,000 and 70,000,000 shall be imposed for one of the following acts:

a/ Purchasing for export or importing for sale on the Vietnamese market goods items or providing services not on the lists of goods and services in which foreign traders' branches are permitted to deal in Vietnam or purchasing goods in Vietnam for sale in Vietnam;

b/ Continuing operating after the foreign traders terminate their operation or notify on the termination of the operation of branches;

c/ Continuing operating after competent State bodies issue decisions to revoke the branch establishment licenses;

d/ Illegally transferring profits out of Vietnam.

Article 11.- Violations of other regulations on operation of representative offices and branches

The sanctioning of acts of administrative violation related to signboards of head offices and transaction venues, use of Vietnamese and foreign laborers; opening and use of bank accounts; implementation of accounting regulations; tax declaration and payment; use of seals…, committed by representative offices and branches shall comply with the provisions of the Government's decrees on sanctioning of administrative violations in the relevant State management domains.

Section III. ACTS OF VIOLATING REGULATIONS ON CIRCULATION OF, AND DEALING IN, GOODS AND SERVICES ON THE MARKET

Article 12.- Violations of regulations on dealing in banned services

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for acts of dealing in banned services.

2. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits and means used in the commission of administrative violations, for violations prescribed in Clause 1 of this Article;

c/ Forcible destruction of articles harmful to human health, cultural products which are reactionary, depraved, superstitious or harmful to children personality education, for violations prescribed in Clause 1 of this Article.

Article 13.- Violations of regulations on dealing in goods banned from circulation

1. A caution or a fine of between VND 200,000 and 500,000 shall be imposed for acts of dealing in goods banned from circulation and valued at up to VND 5,000,000.

2. A fine of between VND 500,000 and 1,000,000 shall be imposed for acts of dealing in goods banned from circulation and valued at between over VND 5,000,000 and 10,000,000.

3. A fine of between VND 1,000,000 and 3,000,000 shall be imposed for acts of dealing in goods banned from circulation and valued at between over VND 10,000,000 and 20,000,000.

4. A fine of between VND 3,000,000 and 5,000,000 for acts of dealing in goods banned from circulation and valued at between over VND 20,000,000 and 30,000,000.

5. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for acts of dealing in goods banned from circulation and valued at between over VND 30,000,000 and 50,000,000.

6. A fine of between VND 10,000,000 and 15,000,000 shall be imposed for acts of dealing in goods banned from circulation and valued at between over VND 50,000,000 and 70,000,000.

7. A fine of between VND 15,000,000 and 20,000,000 shall be imposed for acts of dealing in goods banned from circulation and valued at between over VND 70,000,000 and 100,000,000.

8. A fine doubling the fine levels prescribed from Clause 1 thru Clause 7 of this Article shall be imposed in one of the following cases:

a/ Violation acts are committed by individuals and organizations producing, processing, fashioning, recycling, sorting, assembling, packaging, importing goods banned from circulation;

b/ Goods banned from circulation are toxic chemicals, medicines for prevention and treatment of human and animal diseases, plant protection drugs and assorted medical equipment and instruments not yet permitted for use or circulation in Vietnam.

9. The fine levels prescribed from Clause 1 thru Clause 8 of this Article shall be also imposed on owners or drivers of transport means; owners of storehouses, yards and residential houses; forwarding service business organizations that commit acts of deliberately transporting, harboring, hiding or forwarding goods banned from circulation.

10. Additional sanctioning forms and remedial measures:

a/ Confiscation of goods banned from circulation, for violations prescribed in this Article; confiscation of exhibits, means used in making goods banned from circulation for violations prescribed at Point a, Clause 8 of this Article.

b/ Confiscation of transport means, for violations prescribed in Clause 9 of this Article;

c/ Forcible destruction of goods, articles harmful to human health, animals and plants or polluting the environment, toys harmful to children personality education and harmful cultural products, for violations prescribed in this Article.

Article 14.- Violations of regulations on dealing in goods and services subject to restricted business

1. A caution or a fine of between VND 50,000 and 200,000 for acts of dealing in goods or services subject to restricted business and valued at up to VND 5,000,000 in one of the following cases:

a/ Having no licenses for dealing in goods or services subject to restricted business according to regulations;

b/ Doing business not according to the business lines, goods items, business localities or servicing subjects as stated in the granted business licenses;

c/ Dealing in stampless goods items which must be affixed with stamps according to regulations.

2. A fine of between VND 200,000 and 500,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of between over VND 5,000,000 and 10,000,000.

3. A fine of between VND 500,000 and 1,000,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of between over VND 10,000,000 and 20,000,000.

4. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of between over VND 20,000,000 and 30,000,000.

5. A fine of between VND 2,000,000 and 4,000,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of between over VND 30,000,000 and 50,000,000.

6. A fine of between VND 4,000,000 and 6,000,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of between over VND 50,000,000 and 70,000,000.

7. A fine of between VND 6,000,000 and 8,000,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of between over VND 70,000,000 and 100,000,000.

8. A fine of between VND 8,000,000 and 10,000,000 shall be imposed for acts prescribed in Clause 1 of this Article involving a goods value of over VND 100,000,000.

9. A fine doubling the fine levels prescribed from Clause 1 thru Clause 8 of this Article shall be imposed for violation acts prescribed at Point c, Clause 1 of this Article and committed by individuals or organizations producing, processing, fashioning, recycling, sorting, assembling, packaging goods.

10. Additional sanctioning forms and remedial measures:

a/ Confiscation of goods not affixed with home-made goods stamps according to regulations, for violations prescribed in this Article;

b/ Deprivation of the right to use the licenses for dealing in goods or services subject to restricted business for up to one year, for violations prescribed at Points b and c, Clause 1 of this Article in the case of commission of violations once and again or recidivism;

c/ Forcible compliance with regulations on dealing in goods and services subject to restricted business, for violations prescribed in this Article;

d/ Forcible destruction of goods failing to ensure the circulation conditions, for violations prescribed in this Article.

Article 15.- Violations of regulations on dealing in goods and services subject to conditional business

1. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for one of the following acts:

a/ Dealing in goods or services subject to conditional business without ensuring the prescribed business conditions;

b/ Failing to strictly observe other relevant regulations when dealing in goods or services subject to conditional business;

2. A fine of between VND 2,000,000 and 4,000,000 shall be imposed for acts of dealing in goods or services subject to conditional business without business eligibility certificates or practice certificates as prescribed;

3. A fine of between VND 4,000,000 and 8,000,000 shall be imposed for acts of dealing in goods or services subject to conditional business without ensuring safety for fire and explosion prevention and fighting, sanitation, environment, affecting human health, animals and plants.

4. Additional sanctioning forms and remedial measures:

a/ Confiscation or forcible destruction of goods failing to ensure safety for fire and explosion prevention and fighting, sanitation, environment, affecting human health, animals and plant, for violations prescribed in Clause 3 of this Article;

b/ Deprivation of the right to use business eligibility certificates or practice certificates for up to one year, for violations prescribed at Point b of Clause 1 and in Clause 3 of this Article in the case of commission of violations once and again or recidivism;

c/ Forcible taking of measures to redress violations or remedy consequences caused by violations, for violations prescribed in Clause 3 of this Article;

d/ Forcible compliance with the prescribed business conditions, for violations prescribed in Clauses 1 and 2 of this Article.

Article 16.- Sanctions against the trading of smuggled goods

1. A caution or a fine of between VND 100,000 and 500,000 shall be imposed for acts of trading in smuggled goods valued at up to VND 5,000,000.

2. A fine of between VND 500,000 and 1,000,000 shall be imposed on acts of trading in smuggled goods valued at between over VND 5,000,000 and 10,000,000.

3. A fine of between VND 1,000,000 and 2,000,000 shall be imposed on acts of trading in smuggled goods valued at between over VND 10,000,000 and 20,000,000.

4. A fine of between VND 2,000,000 and 3,000,000 shall be imposed on acts of trading in smuggled goods valued at between over VND 20,000,000 and 30,000,000.

5. A fine of between VND 3,000,000 and 5,000,000 shall be imposed on acts of trading in smuggled goods valued at between over VND 30,000,000 and 50,000,000.

6. A fine of between VND 5,000,000 and 7,000,000 shall be imposed on acts of trading in smuggled goods valued at between over VND 50,000,000 and 70,000,000.

7. A fine of between VND 7,000,000 and 10,000,000 shall be imposed on acts of trading in smuggled goods valued at between over VND 70,000,000 and 100,000,000.

8. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on acts of trading in smuggled goods valued at over VND 100,000,000.

9. A fine doubling the fine levels prescribed from Clause 1 thru Clause 8 of this Article shall be imposed for acts of trading in smuggled goods on the list of those banned from import.

11. Additional sanctioning forms and remedial measures:

a/ Confiscation of smuggled goods, for violations prescribed in this Article;

b/ Confiscation of transport means, for violations prescribed in Clause 10 of this Article;

c/ Forcible destruction of goods, articles harmful to human health, animals and plants or polluting the environment, toys harmful to children personality education and harmful cultural products, for violations prescribed in this Article.

Article 17.- Violations of regulations on labeling of domestically circulated goods and export and import goods

1. A caution or a fine of between VND 200,000 and 1,000,000 shall be imposed on acts of trading in goods with labels (including also additional labels) which are so hidden, ragged or dim that their contents are unreadable.

2. A fine of between VND 500,000 and 1,500,000 shall be imposed for acts of trading in goods with labels designed not according to regulations on label size, area, positions of different contents, method of presentation, and languages used on labels.

3. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for acts of trading in goods with labels (including also additional labels) or accompanying documents containing insufficient or improper contents according to regulations on compulsory contents.

4. A fine of between VND 1,500,000 and 3,000,000 shall be imposed for acts of trading in goods with labels containing untrue information in the form of pictures, drawings or words on quality signs, standards, quality symbols, numeral and bar codes, medals, prizes of all kinds, and other untrue information.

5. A fine of between VND 2,000,000 and 4,000,000 shall be imposed for acts of trading in goods with labels (including original and additional labels of import goods) which have been erased or modified to falsify information on goods.

6. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for one of the following acts:

a/ Trading in labeless goods which must have labels according to regulations;

b/ Trading in import goods with foreign-language original labels but without Vietnamese-language additional labels according to regulations.

7. A fine doubling the fine level prescribed from Clause 1 thru Clause 6 of this Article shall be imposed in one of the following cases:

a/ Acts of violation related to goods labels of food, foodstuff, preventive and curative medicines for human use, veterinary medicines, fertilizers, animal feeds, plant protection drugs, plant and animal seeds;

b/ Acts of violation committed by individuals or organizations producing, processing, fashioning, recycling, packaging, assembling or importing goods.

8. Acts of trading in goods with imitative labels, false trademarks, goods origin, traders' names and addresses shown on their labels or packages shall be sanctioned under the provisions of Articles 18 and 19 of this Decree.

9. Additional sanctioning forms and remedial measures:

a/ Forcible stoppage of circulation of goods with illegal labels, for violations prescribed in this Article;

b/ Forcible taking of measure to redress violations related to goods labels before putting goods into circulation, for violations prescribed in this Article;

c/ Forcible destruction of goods which are inferior in quality, unsafe for humans, animals, plants, ecology and environment, for violations prescribed at Point a, Clause 7 of this Article.

Article 18.- Sanctions against the trading of fake goods

1. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for acts of trading in fake goods with a value equivalent to genuine goods of the same kind of up to VND 5,000,000.

2. A fine of between VND 2,000,000 and 4,000,000 shall be imposed for acts of trading in fake goods with a value equivalent to genuine goods of the same kind of between over VND 5,000,000 and 10,000,000.

3. A fine of between VND 4,000,000 and 8,000,000 shall be imposed for acts of trading in fake goods with a value equivalent to genuine goods of the same kind of between over VND 10,000,000 and 20,000,000.

4. A fine of between VND 8,000,000 and 15,000,000 shall be imposed for acts of trading in fake goods with a value equivalent to genuine goods of the same kind of between over VND 20,000,000 and under 30,000,000.

5. A fine of between VND 15,000,000 and 20,000,000 shall be imposed for acts of trading in fake goods in one of the following cases which are not serious enough for penal liability examination:

a/ Fake goods have a value equivalent to genuine goods of the same kind of over VND 30,000,000;

b/ Fake goods are food, foodstuff, preventive and curative medicines for human use, veterinary medicines, fertilizers, animal feeds, plant protection drugs, plant and animal seeds.

6. A fine doubling the fine levels prescribed from Clause 1 thru Clause 5 of this Article shall be imposed for violation acts committed by individuals or organizations producing, processing, fashioning, recycling, sorting, packaging or importing fake goods.

7. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits and means used in the commission of administrative violations, for violations prescribed in this Article;

b/ Forcible destruction of goods, articles which are useless, unsafe and harmful to production, human health, animals, plants, ecology and environment, for violations prescribed in this Article.

Article 19.- Sanctions against the trading of fake goods stamps, labels and packages

1. A fine of between VND 2,000,000 and 5,000,000 shall be imposed for acts of trading in assorted fake decals, goods labels, label models, goods packages, quality stamps, anti-counterfeiting stamps, goods warranty cards (hereinafter referred to as fake stamps, labels and packages for short) other than those prescribed in Clause 2 of this Article.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for acts of trading in fake stamps, labels and packages of food, foodstuffs, preventive and curative medicines for human use, veterinary drugs, fertilizers, cement, iron and steel, animal feeds, plant protection drugs, plant and animal seeds.

3. A fine doubling the fine levels prescribed in Clauses 1 and 2 of this Article shall be imposed for violation acts committed by individuals or organizations making or importing fake goods stamps, labels and/or packages.

4. Additional sanctioning forms and remedial measures:

a/ Forcible destruction of fake goods stamps, labels and packages, for violations prescribed in this Article;

b/ Confiscation of means used for making fake goods stamps, labels and packages, for violations prescribed in Clause 3 of this Article;

c/ Confiscation and destruction of fake goods stamps, labels and packages, for violations prescribed in this Article in cases where the measure prescribed at Point a, Clause 4 of this Article cannot be taken.

Article 20.- Violations of regulations on trading in goods not yet permitted for circulation or use, expired goods or goods failing to ensure food hygiene and safety

1. A fine of between VND 200,000 and 800,000 shall be imposed for acts of selling cooked, instant food and beverages processed on spot not according to hygiene regulations applicable to goods sellers, selling places, goods display shelves, scaling and measuring tools, goods wrappings, packages and coverings.

2. A fine of between VND 500,000 and 2,000,000 shall be imposed for one of the following acts:

a/ Trading in fresh and raw food (cattle, poultry, aquatic and marine products) that are injected with impurities or inserted with other substances which increase the weight, reduce the quality or natural fragrance of the goods without badly affecting consumers' safety or the ecology and environment;

b/ Trading in assorted food, drinks, ice or beverages which are contaminated with bacteria or harmful substances in excess of the permitted limit.

3. A fine of between VND 1,000,000 and 3,000,000 shall be imposed for acts of trading in agricultural food products containing chemical surpluses in excess of the permitted level.

4. A fine of between VND 2,000,000 and 5,000,000 shall be imposed for acts of trading in food, foodstuffs and drinks containing additives outside the list of those permitted for use in production and processing of food, foodstuffs and drinks or in excess of the permitted level.

5. A fine of between VND 4,000,000 and 8,000,000 shall be imposed for one of the following acts:

a/ Trading in fresh and raw food (cattle, poultry, marine and aquatic products) which are contracted with infectious diseases or preserved with banned chemicals;

b/ Trading in fresh and raw food (cattle, poultry, aquatic and marine products) that are injected with impurities or inserted with other substances which badly affect consumers' health or ecology and environment;

c/ Trading in meat of, or products processed from, cattle or poultry which are dead before being slaughtered.

6. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Trading in expired goods;

b/ Trading in fresh and raw or processed aquatic or marine products containing toxins dangerous to consumers;

c/ Trading in goods items not permitted for circulation or use other than those prescribed at Point b, Clause 8, Article 13 of this Decree.

7. A fine doubling the fine levels prescribed from Clause 2 thru Clause 6 of this Article for acts committed by individuals or organizations producing, processing, fashioning, recycling, assembling, packaging or importing goods.

8. Additional sanctioning forms and remedial measures:

a/ Forcible destruction of goods, for violations prescribed at Point b, Clause 2, in Clauses 3, 4 and 5, and at Points a and b, Clause 6 of this Article;

b/ Confiscation and destruction of goods, for violations prescribed at Point b, Clause 2, in Clauses 3, 4 and 5, and at Points a and b, Clause 6 of this Article in cases where the measure prescribed at Point a, Clause 8 of this Article cannot be taken.

c/ Confiscation of exhibits, for violations prescribed at Point c, Clause 6 of this Article;

d/ Forcible taking of remedial measures to ensure food hygiene and quality according to regulations, for violations prescribed in Clause 1 and at Point a, Clause 2 of this Article.

Article 21.- Violations of regulations on transactions with customers, consumers

1. A caution or a fine of between VND 100,000 and 500,000 shall be imposed for one of the following acts:

a/ Providing falsified, untrue and incomplete information on supplied goods or services for customers, consumers;

b/ Saying words, having behaviors, actions or attitudes hurting customers, consumers when selling goods or providing services;

c/ Refusing to compensate, refund money to, or change goods for customers, consumers when making mistakes, fraudulently swapping goods or cheating in the trading of goods or provision of services.

2. A fine of between VND 300,000 and 700,000 shall be imposed for one of the following acts:

a/ Arbitrarily retaining packages, accessories, spare parts, technical documents and use instruction manuals when selling goods;

b/ Fraudulently swapping goods, causing damage to customers, consumers;

c/ Failing to provide warranty for products or services which must have warranty according to regulations or which are announced to enjoy warranty;

d/ Causing difficulties or obstacles to customers, consumers in the warranty of goods and services.

3. Remedial measures:

Forcible taking of violation-redressing measures, for violations prescribed in this Article.

Article 22.- Violations of regulations on goods measurement, goods and service quality, making of goods sale or service provision invoices or documents, prices and posting of goods and service prices

The sanctioning of violation acts related to goods measurement and quality; making of goods sale or service provision invoices or documents; prices and posting of goods and service prices in trading activities shall comply with the Government's decrees on sanctioning of administrative violations in the relevant State management domains.

Section IV. ACTS OF VIOLATING REGULATIONS ON TRADE PROMOTION

Article 23.- Violations of regulations on sales promotion

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for one of the following acts:

a/ Using goods or services for sales promotion for a goods unit in excess of 30% of the prices of the goods or services under sales promotion before the sales promotion time;

b/ Selling goods, providing services during the sales promotion time at prices 70% lower than their prices before the sales promotion time.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Using the results of the State's construction lotteries as sales promotion results;

b/ Failing to notify on at least one mass medium or to a competent State body of the locality where the sales promotion is organized of the prize-winning results according to the publicized rules within 30 days as from the end of the sales promotion;

c/ Failing to publicly post up the sales promotion period, goods or service prices during the sales promotion period compared with those set before the sales promotion time;

d/ Failing to clearly, honestly and specifically notify on at least one mass medium, goods purchase coupons, competition entry forms, at goods-selling or service-providing places of goods purchase coupons, prizes, prize-drawing and prizewinner-determining methods.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:

a/ Organizing sales promotions without notifying competent bodies thereof according to regulations;

b/ Selling goods or services enclosed with prize-drawing coupons according to the publicized rules and prizes but failing to make written records on, and publicize, the prize-winning results;

c/ Using prize-drawing coupons in a form identical to that of construction lotteries the issue of which is monopolized by the State;

d/ Using coupons lacking necessary information on the sales promotion programs, the number of issued prize-drawing coupons, the number of prizes, the value of each prize, the prize-awarding venues and the prize-drawing time and venues during the sales promotion period;

e/ Drawing prizes before destroying prize-drawing coupons not yet issued or drawing prizes without the witness of competent State bodies and customers' representatives.

4. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for one of the following acts:

a/ Failing to fulfill, incompletely fulfilling or delaying the fulfillment of sales promotion commitments already publicized to customers or on the mass media;

b/ Failing to implement or improperly implementing sales promotion programs already approved by competent State bodies;

c/ Selling goods, providing services enclosed with prize-drawing coupons or other sales promotion forms without written approvals of competent State bodies according to regulations;

d/ Using competition entry forms which have contents and forms running counter to Vietnam's historical, cultural traditions, ethics or fine customs and practices to select prize winners according to the publicized rules and prizes.

5. A fine of between VND 25,000,000 and 35,000,000 shall be imposed for one of the following acts:

a/ Doing sales promotions for goods banned from circulation, services banned from provision, fake goods, unsafe and unhygienic goods, expired goods, goods banned from or not yet permitted for circulation and use in Vietnam;

b/ Using goods and services for sales promotion which are goods banned from circulation, services banned from provision, fake goods, goods not up to publicized standards, unsafe and unhygienic goods, expired goods, goods banned from or not yet permitted for circulation and use in Vietnam;

c/ Using cigarettes as sales promotion goods;

d/ Using alcohol or beer as sales promotion goods for under 16-year children;

e/ Organizing sales promotions at the office buildings of State bodies, mass organizations, schools, hospitals, and armed force units.

6. A fine doubling the fine levels prescribed in Clause 1 thru Clause 5 of this Article shall be imposed for violation acts committed in two or more provinces and centrally-run cities.

7. Additional sanctioning forms and remedial measures:

a/ Forcible destruction or confiscation of exhibits, for violations prescribed at Point c, Clause 3 and Points b, c, d and e, Clause 5 of this Article;

b/ Forcible awarding of prizes to customers as committed or publicized, for violations prescribed at Point a, Clause 4 of this Article;

c/ Forcible taking of violation-redressing measures, for violations prescribed in this Article.

Article 24.- Violations of regulations on trade fairs, exhibitions

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Failing to send reports on schedule or send reports with insufficient contents as prescribed to competent State management bodies after the end of trade fairs or exhibitions;

b/ Displaying at trade fairs or exhibitions goods without labels or with labels incompliant with regulations.

2. A fine of between VND 10,000,000 and 15,000,000 shall be imposed for acts of displaying at trade fairs or exhibitions goods with a quality not up to the publicized quality standards.

3. A fine of between VND 15,000,000 and 20,000,000 shall be imposed for one of the following acts:

a/ Donating or presenting goods temporarily imported for display at trade fairs or exhibitions without the permission of competent State bodies;

b/ Displaying at trade fairs or exhibitions goods beyond their re-export deadline without permission;

c/ Displaying at trade fairs or exhibitions goods banned from circulation, services banned from provisions, expired goods or illegally imported goods;

d/ Organizing trade fairs or exhibitions on the Vietnamese territory without written certifications of competent State bodies according to regulations.

4. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for one of the following acts:

a/ Selling temporarily imported at trade fairs or exhibitions without the permission of competent State bodies;

b/ Illegally consuming on the Vietnamese market goods temporarily imported for display at trade fairs or exhibitions without the permission of competent State bodies;

c/ Organizing trade fairs or exhibitions abroad without written certifications or approvals of competent State bodies according to regulations;

d/ Selling or donating goods which are on the list of goods banned from export or export goods subject to temporary export licensing for display at trade fairs or exhibitions abroad without approvals or permission of competent State bodies.

5. A fine doubling the fine levels prescribed for acts defined at Point d, Clause 3 and Point c, Clause 4 of this Article shall be imposed for violation acts committed by trade fair and exhibition service business organizations.

6. The sanctioning of violation acts committed at trade fairs or exhibitions and related to trading of banned goods, smuggled goods, fake goods, goods subject to restricted or conditional business, goods in violation of goods labeling regulations, goods not yet permitted for circulation and use, expired goods and goods not ensuring food hygiene and safety shall comply with the provisions from Article 12 thru Article 21 of this Decree.

7. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits, for violations prescribed at Points b and c, Clause 3 and Points a and b, Clause 4 of this Article or confiscation of the proceeds from the sale of confiscated goods, for acts prescribed at Points a and b, Clause 4 of this Article.

b/ Forcible taking of violation-redressing measures, for violations prescribed in Clause 1, Clause 2, at Point a, Clause 3 and Point c, Clause 4 of this Article;

c/ Confiscation of the proceeds from the sale of confiscated goods, for violations prescribed at Point d, Clause 4 of this Article.

Article 25.- Violations of regulations on display of goods and services

1. A fine of between VND 2,000,000 and 5,000,000 for one of the following acts:

a/ Hiring and providing goods and service display services without contracts as prescribed;

b/ Displaying goods without labels or with labels incompliant with regulations.

2. A fine of between VND 3,000,000 and 7,000,000 for one of the following acts:

a/ Displaying other persons' goods or services for comparison with one's own goods, except for comparison with fake goods;

b/ Displaying goods or services with samples or contents incompliant with quality standards, prices, utilities, designs, categories, packages and labels or goods and services of the same kinds the traders are trading on the market.

3. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Displaying goods, goods models, goods packages, goods catalogs, services on the lists of goods banned from circulation and services banned from provision;

b/ Displaying goods, goods models, goods packages, goods catalogs, services on the lists of goods banned from import or banned from circulation and use in Vietnam at the time of display.

4. A fine of between VND 7,000,000 and 15,000,000 shall be imposed for one of the following acts:

a/ Displaying goods, services of using displaying or introducing forms and means that cause public disorder, badly affect the landscape, environment or human health;

b/ Displaying goods, services of using displaying or introducing forms and means that run counter to Vietnam's cultural, historical traditions, ethics, fine customs and practices;

c/ Displaying goods, services that disclose national secrets.

5. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits and means used in the commission of administrative violations, for violations prescribed in Clauses 3 and 4 of this Article;

b/ Forcible taking of violation-redressing measures, for violations prescribed at Point b of Clause 1, and in Clause 2 and Clause 4 of this Article.

Article 26.- Violations of regulations on commercial advertisements

The sanctioning of acts of administrative violation related to commercial advertisement shall comply with the provisions of the Government's decrees on sanctioning of administrative violations in the culture and information domain.

Section V. ACTS OF VIOLATING REGULATIONS ON EXPORT, IMPORT OF GOODS AND SERVICES RELATED TO GOODS EXPORT AND IMPORT

Article 27.- Violations of regulations on the use of goods export and import quotas, norms and permits

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for acts of deliberately erasing, modifying, adding or altering the contents or goods export or import quotas or permits.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for acts of illegally purchasing, selling and using goods export or import quotas or permits.

3. Additional sanctioning forms and remedial measures:

a/ Confiscation of the proceeds from the illegal sale and purchase, transfer, use of granted goods export or import quotas or permits, for violations prescribed in Clause 2 of this Article;

b/ Withdrawal of the granted goods export or import quotas or permits, for violations prescribed in this Article.

Article 28.- Violations of regulations on goods export and import consignment business

1. A fine of between VND 5,000,000 and 7,000,000 shall be imposed for one of the following acts:

a/ Undertaking the consigned import of goods incompliant with the commodity lines or items stated in the business registration certificates;

b/ Consigning goods export and import or undertaking the consigned goods export and import without consignment contracts as prescribed.

2. A fine of between VND 7,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Consigning the export or import or undertaking the consigned export or import of goods on the lists of those subject to conditional export or import without export or import quotas or permits;

b/ Using quotas or permits for conditional goods export or import granted to a trader for undertaking the consigned goods export or import for another trader.

3. Remedial measures:

a/ Forcible revocation of granted quotas or permits, for violations prescribed at Point b, Clause 2 of this Article;

b/ Forcible taking of violation-redressing measures, for violations prescribed in Clause 1 and at Point a, Clause 2 of this Article.

Article 29.- Violations of regulations on temporary import-for-re-export and temporary export-for-re-import business

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for acts of dealing in the temporary import for re-export or temporary export for re-import of goods items without permits as prescribed.

2. Remedial measures:

Forcible re-export or re-import of goods, for violations prescribed in Clause 1 of this Article.

Article 30.- Violations of regulations on goods border-gate transshipment service business

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for acts of transshipping goods not through the right border gates as permitted.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for acts of dealing in the goods border-gate transshipment service without permission.

3. Remedial measures

Forcible taking of violation-redressing measures, for violations prescribed in Clause 1 of this Article.

Article 31.- Violations of other regulations on goods export, import and services related thereto

The sanctioning of other violation acts related to goods export and import and other services related to goods export and import not prescribed in this Decree and detected outside the customs-managed areas shall comply with the Government's decree on sanctioning of administrative violations in the customs domain.

Section VI. ACTS OF VIOLATING REGULATIONS ON OTHER COMMERCIAL ACTIVITIES

Article 32.- Violations of regulations on traders' representatives

1. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for one of the following acts:

a/ Hiring representatives or acting as representatives for traders without contracts as prescribed;

b/ Traders' representatives or represented persons are not traders as prescribed.

2. A fine of between VND 2,000,000 and 4,000,000 shall be imposed on representatives who commit one of the following acts:

a/ Disclosing or supplying other persons secrets related to trading activities of the represented persons during the time of acting as their representatives and in two years after the expiry of the representation contracts;

b/ Conducting trading activities in their own names or third persons within the scope of representation.

Article 33.- Violations of regulations on commercial brokerage

1. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for one of the following acts:

a/ Acting as commercial brokers without brokerage contracts as prescribed;

b/ Conducting commercial brokerage activities outside the scope of brokerage contracts.

2. A fine of between VND 2,000,000 and 4,000,000 shall be imposed on commercial brokers who commit one of the following acts:

a/ Being dishonest when acting as commercial brokers;

b/ Disclosing or supplying information damaging the interests of the principals;

c/ Participating in the performance of the contracts between the principals without the principals' authorization.

Article 34.- Violations of regulations on mandated goods purchase and sale

1. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for one of the following acts:

a/ Mandating, or undertaking the mandate of, goods purchase and sale without mandate contracts as prescribed;

b/ Sub-mandating third persons to perform mandate contracts without the consent of mandators.

2. A fine of between VND 2,000,000 and 4,000,000 shall be imposed on the mandatories that commit one of the following acts:

a/ Disclosing secret information on the performance of mandate contracts;

b/ Undertaking the mandate of the purchase and sale of goods other than the goods items stated in the business registration certificates.

Article 35.- Violations of regulations on goods purchase and sale agency

1.A caution or a fine of between VND 500,000 and 1,000,000 shall be imposed for one of the following acts:

a/ The goods or service purchase and sale principals or agents fail to ensure the prescribed conditions on the use of, or acting as, goods or service purchase and sale agents;

b/ Failing to show or show the wrong names or logos of the principal enterprises on the signboards at the purchase or sale agents' places according to regulations;

c/ Arbitrarily transferring the agency rights to third parties without the consent of the principals.

2. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for one of the following acts:

a/ The principals or agents have no goods or service purchase and sale agency contracts as prescribed;

b/ The principals or purchase and sale agents deal in those goods or services which are incompliant with the business lines or goods items stated in their business registration certificates or business licenses.

3. A fine of between VND 2,000,000 and 5,000,000 shall be imposed for one of the following acts:

a/ Purchasing or selling goods or services which must be purchased or sold in the agency form according to regulations without observing or properly observing such regulations;

b/ Purchasing or selling goods or services other than those stated in agency contracts;

c/ Pretending to be agents in order to illegally purchase or sell goods or services.

4. A fine doubling the fine levels prescribed in Clause 1 thru Clause 3 of this Article shall be imposed in one of the following cases:

a/ Goods or services in agency are on the lists of business lines or goods items subject to conditional or restricted business;

b/ Acting as goods or service purchase or sale agents for foreign traders;

c/ Failing to ensure the prescribed conditions when hiring foreign traders as overseas goods sale agents.

5. The sanctioning of violation acts related to the agency for purchase or sale of goods banned by the State from circulation, services banned from provision; goods and services without prescribed conditions; goods banned from import; smuggled goods; fake goods; goods in violation of goods labeling regulations; goods not yet permitted for circulation, use; expired goods and goods failing to ensure food safety and hygiene shall comply with the provisions of Article 12 thru Article 21 of this Decree.

6. Remedial measures:

Forcible taking of violation-redressing measures, for violations prescribed in this Article.

Article 36.- Violations of regulations on commercial goods processing

1. A fine of between VND 2,000,000 and 4,000,000 shall be imposed for one of the following acts:

a/ Processing goods incompliant with the business lines and goods items stated in the business registration certificates;

b/ Ordering or undertaking the processing of goods without contracts as prescribed.

2. A fine of between VND 4,000,000 and 8,000,000 shall be imposed for one of the following acts:

a/ Ordering from, or undertaking the processing of goods for, foreign traders without contracts as prescribed;

b/ Signing contracts for processing goods on the lists of goods banned from export or import, suspended from export or import without the written consent of competent State bodies.

3. A fine of between VND 8,000,000 and 15,000,000 shall be imposed for one of the following acts:

a/ Processing for foreign traders goods on the lists of goods banned from export or import, suspended from export or import without the written consent of competent State bodies;

b/ Ordering the overseas processing of goods on the lists of goods banned from circulation in Vietnam, goods banned or suspended from import.

4. A fine of between VND 15,000,000 and 30,000,000 shall be imposed for acts of selling assorted supplies, raw materials, equipment and machinery imported for processing or processed products in Vietnam without the permission of competent State bodies.

5. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits, for violations prescribed at Point a, Clause 3 and in Clause 4 of this Article;

b/ Forcible taking of violation-redressing measures, for violations prescribed at Point b, Clause 2 and Point b, Clause 3 of this Article.

Article 37.- Violations of regulations on goods auction

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for one of the following acts:

a/ Failing to publicly, fully and accurately post up necessary information on goods put up for auction according to regulations;

b/ Permitting persons who are banned by law from participating in auctions to participate in auctions;

c/ Failing to display, show to auction participants and denying their access to dossiers of goods put up for auction strictly as prescribed;

d/ Failing to publicize auctions of properties which are prescribed to be publicized;

e/ Organizing the auction service business without signing written contracts according to regulations with persons having their goods put up for auction.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Organizing auctions at variance with the law-prescribed order and procedures;

b/ Organizing auctions for goods on the lists of those banned from circulation or not yet permitted for circulation or use in Vietnam;

c/ Bidders for property at auctions connive with one another to suppress prices.

3. Additional sanction forms and remedial measures:

a/ Confiscation of exhibits in the violations, for violations prescribed at Point b, Clause 2 of this Article;

b/ Forcible cancellation of the auction results, for violations prescribed in this Article;

c/ Ban from participation in goods and service auctions for 1 year; or indefinite ban from participation in goods and service auctions, for repeated commission or recidivism of violations prescribed at Point c, Clause 2 of this Article.

Article 38.- Violations of regulations on goods and service biddings

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for one of the following acts:

b/ Bidders fail to ensure the prescribed bidding conditions;

b/ Bidding notices fail to conform with the goods or service bidding forms;

c/ Bidding notices fail to fully contain the prescribed contents;

d/ Failing to make written records when opening bids.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Failing to keep secret bidding documents or information related to biddings throughout the bidding process;

b/ Modifying bid dossiers after bids are opened.

3. Remedial measures:

Forcible cancellation of bidding results, for violations prescribed in this Article.

Article 39.- Violations of regulations on goods rent business

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for acts of hiring out or renting goods without contracts as prescribed.

2. Acts of dealing in hiring out or renting goods banned from circulation or smuggled goods shall be sanctioned according to the provisions of Articles 13 and 16 of this Decree.

Article 40.- Violations of regulations on goods forwarding service business

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for acts of dealing in the goods forwarding service without contracts as prescribed.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for acts of deceiving, cheating or fraudulently swapping goods when providing the goods forwarding service.

3. The sanctioning of acts of forwarding goods banned from circulation and smuggled goods shall comply with the provisions of Clause 9, Article 13 and Clause 10, Article 16 of this Decree.

Article 41.- Violations of regulations on goods and service assessment service business

1. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for acts of appointing assessors who are unqualified according to regulations to assess goods or services.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Authorizing the goods assessment or undertaking the authorized goods assessment without assessment contracts as prescribed;

b/ Assessing goods in cases where such assessment is directly related to the rights and interests of the assessing enterprises or the assessors personally conducting the assessment.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for acts of dishonestly or inaccurately assessing goods or services.

4. Acts that violate the provisions of this Article and their sanctions shall also apply to goods assessment service business enterprises when they conduct assessment in service of the State’s examination work.

Article 42.- Violations of regulations on duty-free shop business

1.A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Opening duty-free shops not at the places permitted for opening duty-free shops according to regulations;

b/ Selling goods not on the list of those permitted for trading at duty-free shops.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:

a/ Dealing in duty-free shops without the permission of competent State bodies;

b/ Selling duty-free goods to subjects not permitted to buy duty-free goods;

c/ Illegally selling goods from duty-free shops on the market.

3. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits or proceeds from the illegal sale of goods, for violations prescribed at Points b and c, Clause 2 of this Article;

b/ Deprivation of the right to use duty-free shop business licenses up to one year; in case of violations committed once and again or recidivism, indefinite deprivation of the right to use duty-free shop business licenses, for violations prescribed in Clause 1 and at Points b and c, Clause 2 of this Article.

Article 43.- Violations of regulations on fair competition

1. A fine of between VND 500,000 and 1,000,000 shall be imposed for one of the following acts:

a/ Disseminating, defaming, spreading false information on lawful business activities of other business organizations or individuals;

b/ Bribing, enticing, compelling customers in goods and service purchase and sale.

2. A fine of between VND 1,000,000 and 5,000,000 shall be imposed for one of the following acts:

a/ Enticing, dragging staff of competition rivals;

b/ Disturbing business activities of other organizations and individuals.

3. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

a/ Forging commercial indications on signboards, papers, documents, invoices, vouchers, advertisement products or at transaction offices, shops, stores, stalls;

b/ Stockpiling goods for speculation to earn illicit profits, causing market disorder;

4. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:

a/ Dumping goods for unfair competition;

b/ Organizing illegal multi-level sale.

5. Additional sanctioning forms and remedial measures:

a/ Confiscation of goods, for violations prescribed at Point b, Clause 3 and Point a, Clause 4 of this Article;

b/ Confiscation of illicit profits, for violations prescribed at Point b, Clause 4 of this Article;

c/ Forcible taking of violation-redressing measures, for violations prescribed in this Article.

Article 44.- Violations of regulations on foreign-invested enterprises' commercial activities

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on foreign-invested enterprises that illegally set up branches or representative offices in provinces or cities.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for illegal investment and commercial acts outside the scope of the granted investment licenses.

3. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on foreign-invested enterprises that commit one of the following acts:

a/ Illegally consuming on the Vietnamese territory supplies, machinery, equipment and means imported for the establishment of joint-venture enterprises or enterprises with 100% foreign capital according to the granted foreign investment licenses;

b/ Illegally consuming on the market assorted supplies and materials imported for enterprises' goods production;

c/ Consuming products on the Vietnamese territory illegally or in excess of the commodity quantity, category and value percentages or norms permitted for consumption in Vietnam.

4. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits in, or proceeds from, the illegal goods sale, for violations prescribed in Clause 2 and at Points a and b, Clause 3 of this Article;

b/ Forcible taking of remedial measures, for violations prescribed at Point c, Clause 3 of this Article.

Article 45.- Violations of regulations on illegal commercial activities conducted by foreign organizations and individuals (referred to as foreigners for short)

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on foreigners that commit acts of illegally consuming on the Vietnamese territory consumer goods imported duty-free for use within the prescribed quotas.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on foreigners that commit illegal commercial acts on the Vietnamese territory.

3. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on foreigners that commit one of the following acts:

a/ Illegally consuming on the Vietnamese territory travel means, communication equipment, office equipment and interior equipment imported duty-free for use within the prescribed quotas;

b/ Illegally consuming travel or transport means temporarily imported into Vietnam.

4. Additional sanctioning forms:

Confiscation of exhibits, for violations prescribed in Clause 1 and Clause 3 of this Article or confiscation of the proceeds from the illegal goods sale, for violations prescribed in this Article.

Article 46.- Violations of obstructing people on duty

1. A caution or a fine of between VND 500,000 and 1,000,000 shall be imposed for one of the following acts:

a/ Failing to declare, report or dishonestly declaring, reporting at the requests of competent persons or agencies;

b/ Obstructing, hassling or shirking the examination by competent persons or agencies.

2. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for one of the following acts:

a/ Reviling, insulting, assaulting, resisting persons or agencies currently performing their examination duty;

b/ Deliberately delaying or shirking the execution of administrative decisions of competent persons or agencies.

3. A fine of between VND 2,000,000 and 4,000,000 shall be imposed for one of the following acts:

a/ Arbitrarily removing the seals of exhibits or means used in violations, which are sealed or kept in custody, or arbitrarily modifying the scenes of administrative violations;

b/ Dispersing, modifying or swapping exhibits or means which are being checked or kept in custody;

c/ Storing, harboring, consuming exhibits or means which are dispersed while being checked or kept in custody.

4. Additional sanctioning forms and remedial measures:

a/ Confiscation of exhibits and means which are dispersed, for violations prescribed at Points b and c, Clause 3 of this Article;

b/ Forced execution of decisions of competent agencies or persons, for violations prescribed in Clauses 1 and 2 of this Article;

c/ Forcible taking of remedial measures, for violations prescribed at Point a, Clause 3 of this Article.

Chapter III

COMPETENCE AND PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS

Article 47.- The administrative violation-sanctioning competence of the People's Committees of all levels:

1. The presidents of the commune-level People's Committees shall have the sanctioning competence prescribed in Article 28 of the Ordinance on Handling of Administrative Violations for acts of administrative violation prescribed in this Decree and committed in the localities under their management.

2. The presidents of the district-level People's Committees shall have the sanctioning competence prescribed in Article 29 of the Ordinance on Handling of Administrative Violations for acts of administrative violation prescribed in this Decree and committed in the localities under their management.

3. The presidents of the provincial-level People's Committees shall have the sanctioning competence prescribed in Article 30 of the Ordinance on Handling of Administrative Violations for acts of administrative violation prescribed in this Decree and committed in the localities under their management.

Article 48.- Administrative violation-sanctioning competence of the Market- Management Agency

1. Market controllers of all levels on duty have the power to:

a/ Impose cautions;

b/ Impose fines of up to VND 200,000;

2. The chiefs of Market Management Teams have the power to:

a/ Impose cautions;

b/ Impose fines of up to VND 5,000,000;

c/ Confiscate exhibits and means used in the administrative violations and valued up to VND 30,000,000;

d/ Force the destruction of articles harmful to human health, animals or plants, harmful cultural products;

e/ Force the taking of remedial measures prescribed in this Decree.

3. The directors of Market Management Sub-Departments have the power to:

a/ Impose cautions;

b/ Impose fines of up to VND 20,000,000;

c/ Deprive of the right to use licenses and practice certificates falling under their jurisdiction;

d/ Confiscate exhibits and means used in the administrative violations;

e/ Force the destruction of articles harmful to human health, animals or plants, harmful cultural products;

f/ Force the taking of remedial measures prescribed in this Decree.

4. The director of the Market Management Department has the power to:

a/ Impose cautions;

b/ Impose fines of up to VND 70,000,000;

c/ Deprive of the right to use licenses and practice certificates falling under their jurisdiction;

d/ Confiscate exhibits and means used in the administrative violations;

e/ Force the destruction of articles harmful to human health, animals or plants, harmful cultural products;

f/ Force the taking of remedial measures prescribed in this Decree.

Article 49.- Administrative violation-sanctioning competence of the People's Police, the Border Guard, and specialized inspectorates

1. The chiefs of the district-level police agencies, the chiefs of the Economic Police Sections of the provincial-level Police Departments, the director of the Economic Police Department shall have the sanctioning competence prescribed in Article 31 of the Ordinance on Handling of Administrative Violations for administrative violation acts prescribed in this Decree and committed in the geographical areas and branches under their respective management.

2. The Border Guards' persons with administrative violation-sanctioning competence shall have the sanctioning competence prescribed in Article 32 of the Ordinance on Handling of Administrative Violations for administrative violation acts prescribed in Article 31 of this Decree and committed in the areas under their management.

3. The specialized inspectorates' persons with administrative violation-sanctioning competence shall have the sanctioning competence prescribed in Article 38 of the Ordinance on Handling of Administrative Violations for administrative violation acts prescribed in this Decree and committed in the geographical areas and domains their branches' management.

Article 50.- Authorization of the sanctioning of administrative violations and determination of the administrative violation-sanctioning competence in the trade domain

The authorization of the sanctioning of administrative violations and the principles for determination of the administrative violation-sanctioning competence in the trade domain shall comply with the provisions of Articles 41 and 42 of the Ordinance on Handling of Administrative Violations.

Article 51.- Procedures for handling violations of administrative regulations in the field of trade

1. The procedures for sanctioning administrative violations in the trade domain shall comply with the provisions of the Ordinance on Handling of Administrative Violations and the Government's Decree No. 134/2003.

2. Files must be set up for all cases of administrative violations and fully stored at the sanctioning offices within the prescribed time limit.

3. Organizations and individuals that are fined must pay the fines at the places specified in the sanctioning decisions and shall be handed fine receipts according to the provisions of Articles 54 and 58 of the Ordinance on Handling of Administrative Violations and the Government's Decree No. 134/2003.

4. In applying the form of confiscation of exhibits and means and tools used in the violations, the persons with the sanctioning competence must strictly follow the procedures specified in Articles 60 and 61 of the Ordinance on Handling of Administrative Violations and Articles 31, 32, 33 and 34 of the Government's Decree No. 134/2003.

5. The regime of management and use of fines, proceeds from the sale of the involved goods, exhibits and means confiscated from the administrative violations shall comply with the Government's regulations and the Finance Ministry's guidance.

Article 52.- Execution of sanctioning decisions and coercion of the execution of decisions to sanction administrative violations in the trade domain

1. Organizations and individuals that are sanctioned for administrative violations under the provisions of this Decree shall strictly execute the sanctioning decisions issued by competent persons within the prescribed time limit. If they refuse to execute the sanctioning decisions or deliberately evades the execution of the sanctioning decisions, they shall be coerced to execute them according to the provisions of Article 66 of the Ordinance on Handling of Administrative Violations.

2. In applying measures to coerce the execution of the administrative violation-sanctioning decisions, competent agencies and persons must strictly comply with the law-prescribed order and procedures.

Article 53.- Application of measures to prevent administrative violations in the trade domain

1. In order to promptly prevent administrative violations and ensure the handling of administrative violations in the trade domain, competent persons may apply preventive administrative measures as provided for in Article 43 of the Ordinance on Handling of Administrative Violations.

2. The competence, order and procedures for the application of measures to prevent administrative violations and the guarantee of the sanctioning of administrative violations in the trade domain shall comply with the provisions of the Ordinance on Handling of Administrative Violations and the Government's Decree No. 134/2003.

Chapter IV

COMPLAINTS, DENUNCIATIONS AND HANDLING OF VIOLATIONS

Article 54.- Complaints, denunciations and settlement thereof

1. Citizens and organizations have the right to denounce to competent State bodies administrative violations committed by organizations or individuals prescribed in this Decree or denounce illegal acts committed by persons with the competence to sanction administrative violations in the trade domain according to law provisions.

2. Organizations and individuals that are sanctioned for administrative violations, subjected to the application of preventive administrative measures or their lawful representatives have the right to complain about the administrative violation-sanctioning decisions or decisions on the application of measures to prevent administrative violations according to law provisions on complaints and denunciations.

3. The order, procedures, time limit and competence for lodging complaints and denunciations as well as for the settlement of complaints and denunciations related to the sanctioning of administrative violations in the trade domain shall comply with the law provisions on complaints and denunciations and the settlement thereof.

Article 55.- Handling of violations committed by persons with competence to sanction administrative violations in the trade domain

If persons with competence to sanction administrative violations in the trade domain commit acts of hassling, tolerating, covering up violations, fail to handle or handle violations belatedly, improperly or ultra vires; illegally appropriate, use money, goods, exhibits, means involved in the violations; obstruct the lawful circulation of goods and cause damage to business people, they shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability and pay damages according to law provisions.

Chapter V

IMPLEMENTATION PROVISIONS

Article 56.- Implementation effect

1. This Decree takes effect 15 days after its publication in the Official Gazette.

2. To annual the Government's Decree No. 01/CP of January 3, 1996 on sanctioning of administrative violations in the trade domain; Decree No. 01/2002/ND-CP of January 3, 2002 amending and supplementing a number of articles of the Government's Decree No. 01/CP of January 3, 1996 on sanctioning of administrative violations in the trade domain and the previously promulgated regulations contrary to this Decree.

Article 57.- Implementation responsibility

1. The Minister of Trade shall have to detail and organize the implementation of this Decree.

2. The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, and the presidents of the People's Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government

Prime Minister
PHAN VAN KHAI